Palm Beach County to consider extension of women/minority business assistance program

Palm Beach County will consider a two-year renewal of its women and minority business assistance program when commissioners meet Tuesday.

The program, established in 2019, will sunset at the end of this year if commissioners don't move to extend it.

County Administrator Verdenia Baker, speaking at the Black Chamber of Commerce of Palm Beach County, warned that the program could be allowed to sunset.

Baker, the first Black person and first woman to serve as Palm Beach County administrator, said the program, which establishes goals for how much work Black and minority firms get from county contracts, has not had as much success as its supporters envisioned.

Baker's warning at the Black chamber breakfast was met with consternation — and a determination to extend the program, study it and improve it.

Joseph Sanches, president of the chamber and a former co-owner of a construction business, said he has encouraged chamber members to attend the Tuesday meeting and urge commissioners to extend the program.

"We don't want the program to sunset," said Sanches, who was among the many Black business and political officials who fought for the creation of the program. "The numbers are not where they need to be, which means the program needs to continue."

How does Palm Beach County's women and minority business assistance program work?

The county has two women and minority business assistance programs, one covering county contracts and another focusing on contracts issued by the county's Solid Waste Authority.

Both programs were established amid intense political battles after studies showed that firms owned by women and minorities were getting less county contract work than would be suggested by their presence in the local market. Even the studies that led to those findings were the focus of intense debate, with the Florida Chapter of the Associated General Contractors of America questioning the methodology used in the studies.

Tuesday's meeting will focus only on the county-wide program, not the Solid Waste Authority program. There is no public indication the AGC, a construction trade group, will launch the all-out attack it waged when the program was established.

Efforts to reach the chapter CEO were unsuccessful.

What are the goals of Palm Beach County's program?

The county's program has a trio of connected goals — to increase the number of women and minority-owed firms that are certified to do county contract work, to boost the amount of county contract work those firms get and to create an environment where the firms "graduate" beyond the revenue limits that qualify them for participation in the program.

Firms owned by women and minorities are often small businesses and frequently don't have the access to capital or the contacts and market experience to compete for large county contracts.

Why it's so important for Palm Beach County businesses to get certified

The county, like other government entities, typically offers only contract work to firms that have undergone its certification process, which seeks to make sure a firm has the insurance, staffing and experience to get the job done. For women- and minority-owned firms fighting to stay afloat, however, that certification process takes time, resources and staffing they don't always have.

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Baker has long urged firms owned by women and minorities to get certified by the county so they can compete for contract work.

Sometimes, with fewer certified women- or minority-owned firms in particular segments of the market than expected, the county will lower its expectation for how much contract work should be undertaken by women- and minority-owned firms.

Sanches said he understands Baker's frustration at seeing contract opportunities bypass firms the county set up its program to help.

"I've heard Mrs. Baker say Black-owned have to apply for the work when its available," he said. "But there may be barriers to that, (insurance) bonding or other challenges to pursuing that work."

While the county continues outreach efforts to get more firms certified, it also wants to see more firms "graduate" beyond the need for its assistance.

From 2019 through 2022, such graduations have been few, county data show.

Only eight firms in construction and eight firms in professional services graduated. Two firms with dual certifications in construction and professional services graduated, and three firms offering goods and services graduated.

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Graduation figures by race show that minority-owned firms are still not growing beyond the need for assistance.

Sixteen of the 21 graduating firms were white-owned. Two were owned by Asian-Americans, and three were owned by Hispanics. No Black firm graduated from 2019 through 2022.

Mack Bernard explains why the program is struggling

Commissioner Mack Bernard, who was honored by the Black chamber in part because of his push to establish the business assistance program, said recent economic disruptions have likely impacted the reach of the program.

"I think when we initially established it in 2019, we were on our way," he said. "Year two and year three, you don't get the full benefit of the program. You have supply chain issues and, of course, you have COVID."

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Bernard said he wants more study of the program's impact, and he wants it extended for two years.

"Yes, it's not a perfect program, but we're starting to improve," he said. "We can certainly provide more opportunities. We still have work to do, and I support the extension."

Tonya Davis Johnson, director of the county's Office of Equal Business Opportunity, said business owners have told her office that there is still work to be done in leveling the playing field.

"We have heard that while the program is improving opportunities for (minority and women business enterprises) there is still a void in contracts awarded," she said. "The community would like to see greater utilization and participation on county contracts in order to grow and sustain their businesses."

Wayne Washington is a journalist covering West Palm Beach, Riviera Beach and race relations at The Palm Beach Post. You can reach him at wwashington@pbpost.com. Help support our work; subscribe today.

This article originally appeared on Palm Beach Post: Palm Beach County may renew women/minority business assistance program